Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FSEA | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | First Seacoast Bancorp | |
Entity Central Index Key | 0001769267 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 6,083,500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | X1 | |
Entity Address, Address Line One | 633 Central Avenue | |
Entity Address, City or Town | Dover | |
Entity Address, State or Province | NH | |
City Area Code | 603 | |
Local Phone Number | 742-4680 | |
Entity Address, Postal Zip Code | 03820 | |
Entity Tax Identification Number | 84-2404519 | |
Entity File Number | 001-38985 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 4,375 | $ 4,009 |
Interest bearing time deposits with other banks | 2,488 | 2,735 |
Securities available-for-sale, at fair value | 43,504 | 44,785 |
Federal Home Loan Bank stock | 3,044 | 2,971 |
Loans | 349,200 | 344,855 |
Less allowance for loan losses | (3,009) | (2,875) |
Net loans | 346,191 | 341,980 |
Land, building and equipment, net | 5,433 | 5,338 |
Bank-owned life insurance | 4,272 | 4,267 |
Accrued interest receivable | 1,239 | 1,235 |
Other assets | 1,775 | 2,173 |
Total assets | 412,321 | 409,493 |
Deposits: | ||
Non-interest bearing deposits | 42,059 | 41,586 |
Interest bearing deposits | 240,666 | 240,030 |
Total deposits | 282,725 | 281,616 |
Advances from Federal Home Loan Bank | 66,992 | 66,219 |
Mortgagors’ tax escrow | 1,890 | 586 |
Deferred compensation liability | 1,526 | 1,607 |
Other liabilities | 1,634 | 2,399 |
Total liabilities | 354,767 | 352,427 |
Stockholders' Equity: | ||
Preferred Stock, $.01 par value, 10,000,000 shares authorized as of March 31, 2020 and December 31, 2019; none issued and outstanding as of March 31, 2020 and December 31, 2019 | ||
Common Stock, $.01 par value, 90,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 6,083,500 shares issued and outstanding as of March 31, 2020 and December 31, 2019 | 61 | 61 |
Additional paid-in capital | 25,633 | 25,636 |
Equity capital | 33,370 | 33,113 |
Accumulated other comprehensive income | 726 | 521 |
Unearned compensation - ESOP 223,568 and 226,549 shares unallocated at March 31, 2020 and December 31, 2019, respectively | (2,236) | (2,265) |
Total stockholders' equity | 57,554 | 57,066 |
Total liabilities and stockholders' equity | $ 412,321 | $ 409,493 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock par value per share | $ 0.01 | $ 0.01 |
Common stock,number of shares authorized | 90,000,000 | 90,000,000 |
Common stock,number of shares issued | 6,083,500 | 6,083,500 |
Common stock,number of shares outstanding | 6,083,500 | 6,083,500 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
ESOP,Unearned Compensation,Shares | 223,568 | 226,549 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 3,609 | $ 3,378 |
Interest on debt securities: | ||
Taxable | 87 | 212 |
Non-taxable | 190 | 115 |
Total interest on debt securities | 277 | 327 |
Dividends | 42 | 61 |
Total interest and dividend income | 3,928 | 3,766 |
Interest expense: | ||
Interest on deposits | 514 | 514 |
Interest on Federal Home Loan Bank advances | 276 | 515 |
Total interest expense | 790 | 1,029 |
Net interest and dividend income | 3,138 | 2,737 |
Provision for loan losses | 115 | |
Net interest income after provision for loan losses | 3,023 | 2,737 |
Noninterest income: | ||
Customer service fees | 232 | 219 |
Gain on sale of loans | 52 | 11 |
Securities gains (losses), net | 114 | (8) |
Income from bank-owned life insurance | 4 | 29 |
Loan servicing loss | (25) | (5) |
Investment services fees | 47 | 44 |
Other income | 15 | 13 |
Total noninterest income | 439 | 303 |
Noninterest expense: | ||
Salaries and employee benefits | 1,990 | 1,752 |
Director compensation | 58 | 80 |
Occupancy expense | 153 | 171 |
Equipment expense | 144 | 132 |
Marketing | 91 | 82 |
Data processing | 267 | 219 |
Deposit insurance fees | 30 | 55 |
Professional fees and assessments | 196 | 130 |
Debit card fees | 49 | 35 |
Employee travel and education expenses | 32 | 51 |
Other expense | 172 | 151 |
Total noninterest expense | 3,182 | 2,858 |
Income before income tax expense | 280 | 182 |
Income tax expense | 23 | 4 |
Net income | $ 257 | $ 178 |
Earnings per share: | ||
Basic | $ 0.04 | |
Diluted | $ 0.04 | |
Weighted Average Shares: | ||
Basic | 5,859,932 | |
Diluted | 5,859,932 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 257 | $ 178 |
Other comprehensive income, net of income taxes: | ||
Unrealized holding gains on securities available-for-sale arising during the period net of income taxes of $94 and $194, respectively | 253 | 518 |
Reclassification adjustment for gains and losses and net amortization or accretion on securities available-for-sale included in net income net of income taxes of $(18) and $9, respectively | (48) | 25 |
Other comprehensive income | 205 | 543 |
Comprehensive income | $ 462 | $ 721 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) on securities available-for-sale arising during the period net of income taxes | $ 94 | $ 194 |
Reclassification adjustment for gains and losses and net amortization or accretion on securities available-for-sale included in net income net of income taxes | $ (18) | $ 9 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Equity Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned Compensation ESOP [Member] |
Beginning Balance at Dec. 31, 2018 | $ 32,727 | $ 33,192 | $ (465) | |||
Net income | 178 | 178 | ||||
Other comprehensive income | 543 | 543 | ||||
Ending Balance at Mar. 31, 2019 | 33,448 | 33,370 | 78 | |||
Beginning Balance at Dec. 31, 2019 | 57,066 | $ 61 | $ 25,636 | 33,113 | 521 | $ (2,265) |
Beginning Balance (shares) at Dec. 31, 2019 | 6,083,500 | |||||
Net income | 257 | 257 | ||||
Other comprehensive income | 205 | 205 | ||||
ESOP shares earned - 11,924 shares | 26 | (3) | 29 | |||
Ending Balance at Mar. 31, 2020 | $ 57,554 | $ 61 | $ 25,633 | $ 33,370 | $ 726 | $ (2,236) |
Ending Balance (shares) at Mar. 31, 2020 | 6,083,500 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | Mar. 31, 2020shares |
Statement Of Stockholders Equity [Abstract] | |
Number of shares committed to be released each year,ESOP | 2,981 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 257 | $ 178 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
ESOP expense | 26 | |
Depreciation | 144 | 132 |
Net amortization of bond premium | 48 | 26 |
Provision for loan losses | 115 | |
Gain on sale of loans | (52) | (11) |
Securities (gains) losses, net | (114) | 8 |
Proceeds from loans sold | 3,966 | 879 |
Origination of loans sold | (3,914) | (868) |
Increase in bank-owned life insurance | (5) | (29) |
Increase in deferred fees on loans | (15) | (4) |
Deferred tax expense (benefit) | 32 | (52) |
Increase in accrued interest receivable | (4) | (125) |
Decrease (increase) in other assets | 290 | (519) |
Decrease in deferred compensation liability | (81) | (73) |
(Decrease) increase in other liabilities | (765) | 812 |
Net cash (used in) provided by operating activities | (72) | 354 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of securities available-for-sale | 15,731 | 1,480 |
Purchase of securities available-for-sale | (14,103) | (4,044) |
Purchase of property and equipment | (239) | (31) |
Loan originations and principal collections, net | (4,311) | (5,637) |
Net purchase of Federal Home Loan Bank stock | (73) | (89) |
Proceeds from sales of interest bearing time deposits with other banks | 247 | 984 |
Net cash used by investing activities | (2,748) | (7,337) |
Cash flows from financing activities: | ||
Net increase (decrease) in NOW, demand deposits, money market and savings accounts | 1,069 | (2,317) |
Net increase in certificates of deposit | 40 | 1,267 |
Increase in mortgagors’ escrow accounts | 1,304 | 1,260 |
Proceeds from long-term FHLB advances | 20,000 | |
Net cash provided by financing activities | 3,186 | 6,115 |
Net change in cash and cash equivalents | 366 | (868) |
Cash and cash equivalents at beginning of period | 4,009 | 5,889 |
Cash and cash equivalents at end of period | 4,375 | 5,021 |
Cash activities: | ||
Cash paid for interest | 776 | 1,040 |
Cash paid for income taxes | 2 | |
Effect of change in fair value of investments available for sale: | ||
Investment securities available-for-sale | 281 | 746 |
Deferred taxes | (76) | (203) |
Other comprehensive income | 205 | 543 |
Federal Home Loan Bank Advances [Member] | ||
Cash flows from financing activities: | ||
Proceeds from short-term FHLB advances | 10,680 | 81,642 |
Payments on short-term FHLB advances | $ (29,907) | $ (75,737) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of First Seacoast Bancorp (the “Company”) were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 27, 2020. The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, First Seacoast Bank (the “Bank”), and the Bank’s wholly owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Corporate Structure The Company is the holding company for the Bank (formerly named Federal Savings Bank). Effective July 16, 2019, pursuant to a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan (the “Plan of Reorganization”), the Bank reorganized into the mutual holding company structure and the Company completed a concurrent stock offering (collectively, the “Reorganization”). In the stock offering, the Company sold a total of 2,676,740 shares of common stock, which included 238,473 shares sold to the First Seacoast Bank Employee Stock Ownership Plan (the “ESOP”), at a price of $10.00 per share. In addition, as part of the Reorganization, the Company issued 3,345,925 shares of common stock to First Seacoast Bancorp, MHC (the “MHC”), the Bank’s parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc. (the “Foundation”), a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. The Company’s common stock began trading on the NASDAQ Capital Market under the symbol “FSEA” on July 17, 2019. Pursuant to the Plan of Reorganization, the Bank adopted an employee stock ownership plan (“ESOP”), which purchased 238,473 shares of common stock in the stock offering with the proceeds of a loan from the Company. As a result of the Reorganization, a total of 6,083,500 shares of common stock of the Company are issued and outstanding, of which 55% are issued to the MHC, 44% were sold to the Bank’s eligible members, the ESOP, and certain other persons in the stock offering, and 1% were contributed to the Foundation. Expenses incurred related to the offering were $1.6 million and were deducted from the stock offering proceeds. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. Banking services, the Company’s only reportable operating segment, is managed as a single strategic unit. The Bank is engaged principally in the business of attracting deposits from the public and investing those deposits. The Bank invests those funds in various types of loans, including residential and commercial real estate, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit and Insurance Corporation (“FDIC”) for the maximum amount permitted by FDIC regulations. Investment management services are offered at the Company’s full-service wealth management office in Dover, New Hampshire. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the accompanying balance sheets. Assets under management totaled approximately $46.6 million and $49.3 million at March 31, 2020 and December 31, 2019, respectively. Our wealth management group, FSB Wealth Management, assists individuals and families in building and preserving their wealth by providing investment services. The investment management group manages portfolios utilizing a variety of investment products. This group also provides a full-service brokerage offering equities, mutual funds, life insurance and annuity products. Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of March 31, 2020 In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848), In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).” In January 2020, the FASB issued ASU 2020-1, “Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and T 815 (A Consensus of the Emerging Issues Task Force),” In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Leases (Topic 842)” Targeted Improvements to Accounting for Hedging Activities,” In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842).” Codification Improvements to Topic 842, Leases,” Leases (Topic 842) – Targeted Improvements,” In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments-Credit Losses Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses, Topic 326 In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20).” |
Securities Available-for-Sale
Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2020 | |
Available For Sale Securities [Abstract] | |
Securities Available For Sale | 2. Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of March 31, 2020 and December 31, 2019: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 1,000 $ 17 $ — $ 1,017 U.S. Government agency small business administration pools guaranteed by SBA 2,622 38 — 2,660 Collateralized mortgage obligations issued by the FHLMC 900 25 — 925 Residential mortgage backed securities 3,103 71 — 3,174 Municipal bonds 34,885 1,063 (220 ) 35,728 $ 42,510 $ 1,214 $ (220 ) $ 43,504 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 9,000 $ 11 $ (14 ) $ 8,997 U.S. Government agency small business administration pools guaranteed by SBA 2,760 — (20 ) 2,740 Collateralized mortgage obligations issued by the FHLMC 986 — (6 ) 980 Residential mortgage backed securities 3,186 4 (2 ) 3,188 Municipal bonds 28,138 800 (58 ) 28,880 $ 44,070 $ 815 $ (100 ) $ 44,785 The amortized cost and fair values of available-for-sale securities at March 31, 2020 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (Dollars in thousands) March 31, 2020 Due after one year through five years $ — $ — Due after five years through ten years 1,000 1,017 Due after ten years 34,885 35,728 U.S. Government-sponsored enterprises obligations and municipal bonds $ 35,885 $ 36,745 U.S. Government agency small business pools guaranteed by SBA 2,622 2,660 Collateralized mortgage obligations issued by the FHLMC 900 925 Residential mortgage backed securities 3,103 3,174 Total $ 42,510 $ 43,504 The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2020 and December 31, 2019: Less than 12 Months More than 12 Months Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) March 31, 2020 U.S. Government sponsored enterprises obligations — $ — $ — — $ — $ — $ — $ — U.S. Government agency small business administration pools guaranteed by SBA — — — — — — — — Collateralized mortgage obligations issued by the FHLMC — — — — — — — — Residential mortgage backed securities — — — — — — — — Municipal bonds 21 8,350 (220 ) — — — 8,350 (220 ) 21 $ 8,350 $ (220 ) — $ — $ — $ 8,350 $ (220 ) December 31, 2019 U.S. Government sponsored enterprises obligations 2 $ 1,995 $ (5 ) 1 $ 1,991 $ (9 ) $ 3,986 $ (14 ) U.S. Government agency small business administration pools guaranteed by SBA 2 2,740 (20 ) — — — 2,740 (20 ) Collateralized mortgage obligations issued by the FHLMC 1 980 (6 ) — — — 980 (6 ) Residential mortgage backed securities 1 999 (2 ) — — — 999 (2 ) Municipal bonds 8 4,052 (58 ) — — — 4,052 (58 ) 14 $ 10,766 $ (91 ) 1 $ 1,991 $ (9 ) $ 12,757 $ (100 ) In evaluating whether the investments have suffered an other-than-temporary decline, management evaluated the amount of the decline compared to cost, the length of time and extent to which fair value has been less than cost, the underlying creditworthiness of the issuer, the fair values exhibited during the year and estimated future fair values. In general, management concluded the declines are due to coupon rates compared to market rates and current economic conditions. The Company does not intend to sell investments with unrealized losses as it is more likely than not that the Company will not be required to sell these investments before recovery of their amortized cost basis. Based on evaluations of the underlying issuers’ financial condition, current trends and economic conditions, management does not believe any securities suffered an other-than-temporary decline in value as of March 31, 2020 (unaudited) or December 31, 2019. Sales proceeds and gross realized gains and losses on available for sale securities were as follows for the three months ended: March 31, 2020 2019 (Dollars in thousands) Sales proceeds $ 15,731 $ 1,480 Gross realized gains 118 4 Gross realized losses (4 ) (12 ) Net realized gains (losses) $ 114 $ (8 ) As of March 31, 2020 or December 31, 2019, there were no holdings that were issued by a single state or political subdivision, which comprised more than 10% of the total fair value of the Company’s available-for-sale securities. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | 3. Loans The Bank’s lending activities are primarily conducted in and around Dover, New Hampshire, and in the areas surrounding its branches. The Bank grants commercial real estate loans, multifamily 5+ dwelling unit loans, commercial and industrial loans, acquisition, development and land loans, 1–4 family residential loans, home equity line of credit loans and consumer loans. Most loans are collateralized by real estate. The ability and willingness of real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic area and the general economy. Loans consisted of the following at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in thousands) Commercial real estate (CRE) $ 68,231 $ 70,194 Multifamily (MF) 6,299 4,888 Commercial and industrial (C+I) 23,758 24,676 Acquisition, development, and land (ADL) 20,581 18,844 1-4 family residential (RES) 216,775 213,322 Home equity line of credit (HELOC) 10,566 10,123 Consumer (CON) 1,919 1,752 Total loans 348,129 343,799 Net deferred loan costs 1,071 1,056 Allowance for loan losses (3,009 ) (2,875 ) Total loans, net $ 346,191 $ 341,980 Changes in the allowance for loan losses (“ALL”) for the three months ended March 31, 2020 and 2019 by portfolio segment are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2018 $ 560 $ 22 $ 232 $ 88 $ 1,593 $ 69 $ 7 $ 235 $ 2,806 Provision for loan losses 84 (1 ) (12 ) 55 (8 ) (18 ) (2 ) (98 ) — Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Balance, March 31, 2019 644 21 220 143 1,585 51 5 137 2,806 Balance, December 31, 2019 781 23 350 145 1,503 52 18 3 2,875 Provision for loan losses (4 ) 25 (63 ) (10 ) 140 27 2 (2 ) 115 Charge-offs — — — — — — — — — Recoveries 19 — — — — — — — 19 Balance, March 31, 2020 $ 796 $ 48 $ 287 $ 135 $ 1,643 $ 79 $ 20 $ 1 $ 3,009 As of March 31, 2020 and December 31, 2019, information about loans and the ALL by portfolio segment are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total March 31, 2020 Loan Balances Individually evaluated for impairment $ 108 $ — $ 1,044 $ — $ 65 $ — $ — $ — $ 1,217 Collectively evaluated for impairment 68,123 6,299 22,714 20,581 216,710 10,566 1,919 — 346,912 Total $ 68,231 $ 6,299 $ 23,758 $ 20,581 $ 216,775 $ 10,566 $ 1,919 $ — $ 348,129 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 796 48 287 135 1,643 79 20 1 3,009 Total $ 796 $ 48 $ 287 $ 135 $ 1,643 $ 79 $ 20 $ 1 $ 3,009 December 31, 2019 Loan Balances Individually evaluated for impairment $ 109 $ — $ 996 $ — $ 66 $ — $ — $ — $ 1,171 Collectively evaluated for impairment 70,085 4,888 23,680 18,844 213,256 10,123 1,752 — 342,628 Total $ 70,194 $ 4,888 $ 24,676 $ 18,844 $ 213,322 $ 10,123 $ 1,752 $ — $ 343,799 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 781 23 350 145 1,503 52 18 3 2,875 Total $ 781 $ 23 $ 350 $ 145 $ 1,503 $ 52 $ 18 $ 3 $ 2,875 The following is an aged analysis of past due loans by portfolio segment as of March 31, 2020: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 68,231 $ 68,231 $ — MF — — — — 6,299 6,299 — C+I 292 — 967 1,259 22,499 23,758 967 ADL — — — — 20,581 20,581 — RES 43 88 65 196 216,579 216,775 65 HELOC — 9 — 9 10,557 10,566 — CON — — — — 1,919 1,919 — $ 335 $ 97 $ 1,032 $ 1,464 $ 346,665 $ 348,129 $ 1,032 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2019: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 70,194 $ 70,194 $ — MF — — — — 4,888 4,888 — C+I — — 996 996 23,680 24,676 996 ADL — — — — 18,844 18,844 — RES — 19 66 85 213,237 213,322 66 HELOC — — — — 10,123 10,123 — CON — — — — 1,752 1,752 — $ — $ 19 $ 1,062 $ 1,081 $ 342,718 $ 343,799 $ 1,062 There were no loans collateralized by residential real estate property in the process of foreclosure at March 31, 2020 or December 31, 2019. The following table provides information on impaired loans as of March 31, 2020 and December 31, 2019: (Dollars in thousands) Recorded Carrying Value Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2020 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I 967 1,038 — 982 — ADL — — — — — RES 65 65 — 65 — HELOC — — — — — CON — — — — — Total impaired loans $ 1,032 $ 1,103 $ — $ 1,047 $ — December 31, 2019 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I 996 1,057 — 344 36 ADL — — — — — RES 66 66 — 67 — HELOC — — — — — CON — — — — — Total impaired loans $ 1,062 $ 1,123 $ — $ 411 $ 36 Credit Quality Information The Bank utilizes a ten-grade internal loan rating system for its commercial real estate, multifamily, commercial and industrial and acquisition, development and land loans. Residential real estate, home equity line of credit and consumer loans are considered “pass” rated loans until they become delinquent. Once delinquent, loans can be rated an 8, 9 or 10 as applicable. Loans rated 1 through 6: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 7: Loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 8: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Bank will sustain some loss if the weakness is not corrected. Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 10: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted and should be charged off. On an annual basis, or more often if needed, the Bank formally reviews the ratings on its commercial and industrial, commercial real estate and multifamily loans. On a periodic basis, the Bank engages an independent third party to review a significant portion of loans within these segments and to assess the credit risk management practices of its commercial lending department. Management uses the results of these reviews as part of its annual review process and overall credit risk administration. On a quarterly basis, the Bank formally reviews the ratings on its applicable residential real estate and home equity loans if they have become classified as non-accrual. Criteria used to determine ratings consist of loan-to-value ratios and days delinquent. The following presents the internal risk rating of loans by portfolio segment as of March 31, 2020: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 68,123 $ — $ 108 $ 68,231 MF 6,299 — — 6,299 C+I 21,258 2,211 289 23,758 ADL 20,581 — — 20,581 RES 216,710 — 65 216,775 HELOC 10,566 — — 10,566 CON 1,919 — — 1,919 Total $ 345,456 $ 2,211 $ 462 $ 348,129 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2019: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 70,085 $ — $ 109 $ 70,194 MF 4,888 — — 4,888 C+I 22,208 2,166 302 24,676 ADL 18,844 — — 18,844 RES 213,256 — 66 213,322 HELOC 10,123 — — 10,123 CON 1,752 — — 1,752 Total $ 341,156 $ 2,166 $ 477 $ 343,799 In December 2019, a novel strain of coronavirus (“COVID-19”) was reported. In response to COVID-19, we have implemented a short-term loan modification program to provide temporary payment relief to certain of our borrowers who meet the program's qualifications. This program allows for a deferral or modification of payments for 90 days, which we may extend for an additional 90 days, for a maximum of 180 days on a cumulative basis. The program has been offered to both retail and commercial borrowers. The majority of short-term loan modifications for retail loan borrowers consist of deferred payments (which may include principal, interest and escrow), which are capitalized to the loan balance and recovered through the re-amortization of the monthly payment at the end of the deferral period. For commercial loan borrowers, the majority of short-term modifications consist of allowing the borrower to make interest-only payments with the deferred principal to be due at maturity or repaid as the monthly payment is re-amortized at the next interest reset date as is applicable to the individual loan structure. Alternatively, commercial loan borrowers may defer their full monthly payment similar to the retail loan program outlined above. All loans modified under these programs are maintained on full accrual status during the deferral period. As of March 31, 2020, we have provided temporary payment relief for 36 loans with aggregate outstanding principal balances of $14.2 million. As of March 31, 2020, temporary modifications consisted of 10 commercial loans with aggregate outstanding principal balances of $7.1 million and 26 residential loans with aggregate outstanding principal balances of $7.1 million. The provisions of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) included an election to not apply the guidance on accounting for troubled debt restructurings to loan modifications, such as extensions or deferrals, related to COVID-19 made between March 1, 2020 and the earlier of (i) December 31, 2020 or (ii) 60 days after the end of the COVID-19 national emergency. The relief can only be applied to modifications for borrowers that were not more than 30 days past due as of December 31, 2019. The Company elected to adopt these provisions of the CARES Act for the temporary modifications described above. Certain directors and executive officers of the Company and companies in which they have significant ownership interests were customers of the Bank. Loans outstanding to these persons and entities at March 31, 2020 and December 31, 2019 were $5.4 million and $5.2 million, respectively. |
Loan Servicing
Loan Servicing | 3 Months Ended |
Mar. 31, 2020 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | 4. Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of such loans were $49.9 million and $49.3 million at March 31, 2020 and December 31, 2019, respectively. Substantially all of these loans were originated by the Bank and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 10, Fair Value of Assets and Liabilities, for more information). Changes to the balance of mortgage servicing rights are recorded in loan servicing loss in the Company’s consolidated statements of income. The Bank’s mortgage servicing activities include: collecting principal, interest and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Loan servicing loss, including late and ancillary fees, was $25,000 and $5,000 for the three months ended March 31, 2020 and 2019, respectively. The Bank’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in the Bank’s market areas. The following summarizes activity in mortgage servicing rights for the three months ended March 31, 2020 and 2019: March 31, (Dollars in thousands) 2020 2019 Balance, December 31, $ 397 $ 479 Additions 43 11 Payoffs (26 ) (11 ) Change in fair value due to change in assumptions (72 ) (35 ) Balance, March 31, $ 342 $ 444 Fair value at March 31, 2020 was determined using a discount rate of 9.00%, prepayment rate of 17.75%, weighted average delinquency rate of 2.52% and a weighted average default rate of 0.12%. Fair value at March 31, 2019 was determined using a discount rate of 9.50%, prepayment rate of 8.58%, weighted average delinquency rate of 2.48% and a weighted average default rate of 0.09%. Mortgage servicing rights are included in other assets on the accompanying consolidated balance sheets. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposits | 5. Deposits Deposits consisted of the following at March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 December 31, 2019 NOW and demand deposits $ 114,931 $ 115,024 Money market deposits 66,136 65,611 Savings deposits 40,599 39,962 Time deposits of $250,000 and greater 13,884 13,481 Time deposits less than $250,000 47,175 47,538 $ 282,725 $ 281,616 At March 31, 2020, the scheduled maturities of time deposits were as follows (in thousands): 2020 $ 45,522 2021 10,661 2022 3,683 2023 727 2024 445 2025 21 $ 61,059 There were no brokered deposits included in time deposits at March 31, 2020 or December 31, 2019. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | 6. Borrowings Federal Home Loan Bank (FHLB A summary of borrowings from the FHLB is as follows (dollars in thousands): March 31, 2020 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 25,680 2020 0.36% to 2.19 % – fixed 2,262 2022 0.00 % – fixed 18,800 2024 0.00% to 1.69% – fixed 20,000 2025 1.35% to 1.52% – fixed 250 2028 0.00 % – fixed $ 66,992 December 31, 2019 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 44,907 2020 1.77% to 2.19 % – fixed 2,262 2022 0.00% – fixed 18,800 2024 0.00% to 1.69% – fixed 250 2028 0.00% – fixed $ 66,219 All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans and certain U.S. government sponsored mortgage-backed securities in an aggregate amount equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $75.5 million and $81.7 million at March 31, 2020 and December 31, 2019, respectively. At March 31, 2020 and December 31, 2019, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. The Bank has an overnight line of credit with the FHLB that may be drawn up to $3.0 million. Additionally, the Bank has a total of $5.0 million of unsecured Fed Funds borrowing lines of credit with two correspondent banks. The entire balance of all these credit facilities was available at March 31, 2020. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Employee Stock Ownership Plan As part of the stock offering in 2019, the Company established the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants based on compensation, subject to federal limits. The number of shares committed to be released per year through 2038 is 11,924. The ESOP funded its purchase of 238,473 shares through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee will repay the loan principally through the Bank’s contributions to the ESOP over the remaining loan term that matures on December 31, 2038. At March 31, 2020, the remaining principal balance on the ESOP debt was $2.3 million. Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the three months ended March 31, 2020 was $26,000. March 31, 2020 Shares held by the ESOP include the following: Allocated 11,924 Committed to be allocated 2,981 Unallocated 223,568 Total 238,473 The fair value of unallocated shares was approximately $1.3 million at March 31, 2020. 401(k) Plan The Company sponsors a 401(k) defined contribution plan for substantially all employees pursuant to which employees of the Company could elect to make contributions to the plan subject to Internal Revenue Service limits. The Company made matching and profit-sharing contributions to eligible participants in accordance with plan provisions. The Company’s contributions for the three months ended March 31, 2020 and 2019 were $50,000 and $34,000, respectively. Pension Plan The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (The Pentegra DB Plan), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 The funded status (fair value of plan assets divided by funding target) as of July 1, 2019 is as follows: 2019 Valuation Report 92.61 % (1) (1) Fair value of plan assets reflects any contributions received through June 30, 2019. Based upon the funded status of the Pentegra DB Plan as of July 1, 2019, no funding improvement plan or rehabilitation plan has been implemented or is pending as of March 31, 2020. Total pension plan expense for the three months ended March 31, 2020 and 2019 was $99,000 and $87,000, respectively, and is included in salaries and employee benefits expense in the accompanying consolidated financial statements. The Company did not pay a surcharge to the Pentegra DB Plan during the three months ended March 31, 2020. The Company enacted a “hard freeze” for the Pentegra DB Plan as of December 31, 2018, eliminating all future service-related accruals for participants. Prior to this enactment the Company maintained a “soft freeze” status that continued service-related accruals for its active participants with no new participants permitted into the Pentegra DB Plan. The Company estimates a contribution amount of approximately $360,000 for the year ending December 31, 2020. Supplemental Executive Retirement Plans Salary Continuation Plan The Company maintains a nonqualified supplemental retirement plan for its current and former President. The plan provides supplemental retirement benefits payable in installments over a period of years upon retirement or death. The recorded liability at March 31, 2020 and December 31, 2019 relating to this supplemental retirement plan was $551,000 and $590,000, respectively. The discount rate used to determine the Company’s obligation was 5.00%. The projected rate of salary increase for its current President was 5%. The expense of this salary retirement plan was $27,000 and $23,000 for the three months ended March 31, 2020 and 2019, respectively. Executive Supplemental Retirement Plan The recorded liability at March 31, 2020 and December 31, 2019 relating to the supplemental retirement plan for the Bank’s former President was $171,000. The discount rate used to determine the Company’s obligation was 6.25% at March 31, 2020 and December 31, 2019. Endorsement Method Split Dollar Plan The Company has an endorsement method split dollar plan for a former President/Director. The recorded liability at March 31, 2020 and December 31, 2019 relating to this supplemental executive benefit agreement was $33,000. The expense of this supplemental plan was $-0- and $(6,000) for the three months ended March 31, 2020 and 2019, respectively. Deferred Directors Supplemental Retirement Plan The Company has a supplemental retirement plan for eligible directors that provides for monthly benefits based upon years of service to the Company, subject to certain limitations as set forth in the agreements. The present value of these future payments is being accrued over the estimated period of service. The estimated liability at March 31, 2020 and December 31, 2019 relating to this plan was $532,000 and $581,000, respectively. The discount rate used to determine the Company’s obligation was 6.25% at March 31, 2020 and December 31, 2019. Total supplemental retirement plan expense amounted to $10,000 and $32,000 for the three months ended March 31, 2020 and 2019, respectively. Additionally, the Company has a deferred director’s fee plan, which allows members of the board of directors to defer the receipt of fees that otherwise would be paid to them. At March 31, 2020 (unaudited) and December 31, 2019, the total deferred director’s fees amounted to $240,000 and $233,000, respectively. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive Income | 8. Other Comprehensive Income The Company reports certain items as “other comprehensive income” and reflects total comprehensive income in the consolidated financial statements for all periods containing elements of other comprehensive income. A summary of the reclassification adjustments out of accumulated other comprehensive income for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Affected Line Item in Statements of Income (Gains) losses on securities available for sale $ (114 ) $ 8 Securities gains (losses), net Tax effect 31 (2 ) Income tax expense $ (83 ) $ 6 Net income Net amortization of premium on securities $ 48 $ 26 Interest on debt securities Tax effect (13 ) (7 ) Income tax expense $ 35 $ 19 Net income |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Regulatory Matters [Abstract] | |
Regulatory Matters | 9. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below). Management believes that, as of March 31, 2020 and December 31, 2019, the Bank met all capital adequacy requirements to which it is subject, including the capital conservation buffer, at those dates. As fully phased in on January 1, 2019, the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III Capital Rules”) require the Bank to maintain (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0%), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of March 31, 2020 and December 31, 2019 for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of March 31, 2020 and December 31, 2019 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels. As of January 1, 2019, the Basel III Capital Rules were fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020 Total Capital (to risk- weighted assets) $ 49,784 18.26 % $ 21,811 8.0 % $ 28,627 10.5 % Tier I Capital (to risk- weighted assets) 46,717 17.14 16,354 6.0 23,168 8.5 Tier I Capital (to average assets) 46,717 11.49 16,264 4.0 16,264 4.0 Common Equity Tier 1 (to risk-weighted assets) 46,717 17.14 12,265 4.5 19,079 7.0 Minimum Capital Minimum To Be Well Capitalized Under Prompt Corrective Actual Requirement Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total Capital (to risk-weighted assets) $ 49,259 18.52 % $ 21,278 8.0 % $ 27,928 10.5 % Tier I Capital (to risk-weighted assets) 46,321 17.41 15,961 6.0 22,611 8.5 Tier I Capital (to average assets) 46,321 11.41 16,236 4.0 16,236 4.0 Common Equity Tier 1 (to risk-weighted assets) 46,321 17.41 11,971 4.5 18,621 7.0 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Fair Values Of Assets And Liabilities [Abstract] | |
Fair Values of Assets and Liabilities | 10. Fair Values of Assets and Liabilities Determination of Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability and reliability of the assumptions used to determine fair value. Level 1 - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities, fair value is based upon the lowest level of observable input that is significant to the fair value measurement. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all the Company’s financial assets and financial liabilities carried at fair value for March 31, 2020 and December 31, 2019. There were no significant transfers between levels of the fair value hierarchy during the three months ended March 31, 2020 and 2019. Financial Assets and Financial Liabilities: Financial assets and financial liabilities measured at fair value on a recurring basis include the following: Securities Available-for-Sale : The Company’s investment in U.S. Government-sponsored entities bonds, U.S Government agency small business administration pools guaranteed by the SBA, Collateralized mortgage obligations issued by the FHLMC, mortgage-backed securities and other municipal bonds is generally classified within Level 2 of the fair value hierarchy. For these securities, the Company obtains fair value measurements from independent pricing services. The fair value measurements consider observable data that may include reported trades, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. Mortgage Servicing Rights : Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (see Note 4 Loan Servicing for more information). These assumptions are inherently sensitive to change as these unobservable inputs are not based on quoted prices in active markets or otherwise observable. The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 (Dollars in thousands) March 31, 2020 Mortgage servicing rights $ 342 $ — $ — $ 342 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 1,017 — 1,017 — U.S Government agency small business administration pools guaranteed by the SBA 2,660 — 2,660 — Collateralized mortgage obligations issued by the FHLMC 925 — 925 — Residential mortgage backed securities 3,174 — 3,174 — Municipal bonds 35,728 — 35,728 — $ 43,846 $ — $ 43,504 $ 342 Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2019 Mortgage servicing rights $ 397 $ — $ — $ 397 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 8,997 — 8,997 — U.S Government agency small business administration pools guaranteed by the SBA 2,740 — 2,740 — Collateralized mortgage obligations issued by the FHLMC 980 — 980 — Residential mortgage backed securities 3,188 — 3,188 — Municipal bonds 28,880 — 28,880 — $ 45,182 $ — $ 44,785 $ 397 For the three months ended March 31, 2020, and March 31, 2019, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage Servicing Rights (1) Three Months Ended March 31, 2020 Balance as of January 1, 2020 $ 397 Included in Net Income (55 ) Balance as of March 31, 2020 $ 342 Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of March 31, 2020 $ — Three Months Ended March 31, 2019 Balance as of January 1, 2019 $ 479 Included in Net Income (35 ) Balance as of March 31, 2019 $ 444 Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of March 31, 2019 $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. For Level 3 assets measured at fair value on a recurring basis as of March 31, 2020, and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Weighted Average (1) Fair Value March 31, 2020 Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 9.05% - 37.04% 17.75% $ 342 13.08% $ 397 Discount Rate 9.00% - 9.00% 9.00% 9.50% Delinquency Rate 2.44% - 3.22% 2.52% 2.48% Default Rate 0.10% - 0.26% 0.12% 0.09% (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average prepayment rate, weighted-average discount rate, weighted average delinquency rate and weighted-average default rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Observable and unobservable inputs are entered into this model as prescribed by an independent third party to arrive at an estimated fair value. See Note 4, Loan Servicing, for a rollforward of our Level 3 item and related inputs and assumptions used to determine fair value at March 31, 2020. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis during the reported periods may include certain impaired loans reported at the fair value of the underlying collateral. Fair value is measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, real estate collateral related nonrecurring fair value measurement adjustments have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Financial assets measured at fair value on a non-recurring basis during the reported periods also include loans held for sale. Residential mortgage loans held for sale are recorded at the lower of cost or fair value and are therefore measured at fair value on a non-recurring basis. The fair values for loans held for sale are estimated based on commitments in effect from investors or prevailing market prices for loans with similar terms to borrowers of similar credit quality and are included in Level 3. At March 31, 2020, the Company’s only asset measured at fair value on a nonrecurring basis is a loan identified as impaired for which a partial write-off has been recorded. This impaired loan is reported at the fair value of the underlying collateral, less estimated selling costs. The Company classifies impaired loans as Level 3 in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party, but can be adjusted, and therefore classified as Level 3. The following summarizes assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019: Fair Value Measurements at Reporting Date Using: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 March 31, 2020 Impaired Loans $ 967 $ — $ — $ 967 December 31, 2019 Impaired Loans $ 996 $ — $ — $ 996 The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input March 31, 2020 Impaired Loans $ 967 Market Approach Appraisal of Collateral Selling Costs Provision December 31, 2019 Impaired Loans $ 996 Market Approach Appraisal of Collateral Selling Costs Provision Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis generally include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, are remeasured at fair value through a write-down included in other non-interest expense. There were no foreclosed assets at March 31, 2020 and December 31, 2019. ASC Topic 825, “Financial Instruments,” Summary of Fair Values of Financial Instruments not Carried at Fair Value The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at March 31, 2020 and December 31, 2019 are as follows: (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 March 31, 2020 Financial Assets: Cash and due from banks $ 4,375 $ 4,375 $ 4,375 $ — $ — Interest-bearing time deposits with other banks 2,488 2,488 — 2,488 — Federal Home Loan Bank stock 3,044 3,044 — 3,044 — Bank-owned life insurance 4,272 4,272 — 4,272 — Loans, net 346,191 344,307 — — 344,307 Accrued interest receivable 1,239 1,239 1,239 — — Financial Liabilities: Deposits $ 282,725 $ 285,121 $ 223,555 $ 61,566 $ — Advances from Federal Home Loan Bank 66,992 67,599 — 67,599 — Mortgagors’ tax escrow 1,890 1,890 — 1,890 — December 31, 2019 Financial Assets: Cash and due from banks $ 4,009 $ 4,009 $ 4,009 $ — $ — Interest-bearing time deposits with other banks 2,735 2,735 — 2,735 — Federal Home Loan Bank stock 2,971 2,971 — 2,971 — Bank-owned life insurance 4,267 4,267 — 4,267 — Loans, net 341,980 336,847 — — 336,847 Accrued interest receivable 1,235 1,235 1,235 — — Financial Liabilities: Deposits $ 281,616 $ 281,707 $ 220,596 $ 61,111 $ — Advances from Federal Home Loan Bank 66,219 66,060 — 66,060 — Mortgagors’ tax escrow 586 586 — 586 — |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events On April 13, 2020, the Company executed two derivative hedging instruments to mitigate exposure to interest rate risk and to facilitate its liquidity needs. On April 13, 2020, the Company borrowed $5 million in 3-month fixed rate advances from the FHLB that will be renewed on a quarterly basis and remain outstanding until April 13, 2025. The renewal date will be on the 13th day of every January, April, July and October and the interest rate on these quarterly advances is expected to move closely with changes in the 3-month London Inter-bank Offered Rate (“LIBOR”) (a benchmark interest rate). Given the characteristics of these advances, the Company is exposed to interest rate risk caused by the variability of expected future interest expense attributable to changes in the 3-month LIBOR. The Company’s hedging objective is, therefore, to convert the floating interest payments to a fixed rate on the FHLB advances from July 13, 2020 until April 13, 2025. The Company will meet this objective using a 5-year interest rate swap with a notional amount of $5 million to pay interest at a fixed rate of 0.68% and receive interest at a variable rate equal to the 3-month LIBOR rate. The Company will, starting in April 2021, borrow an additional $5 million in 3-month fixed rate advances from the FHLB that will be renewed on a quarterly basis and remain outstanding until April 13, 2026. The renewal date will be on the 13th day of every January, April, July and October, and the interest rate on these quarterly advances is also expected to move closely with changes in the 3-month LIBOR. The Company’s hedging objective is to convert these floating interest payments to a fixed rate on the FHLB advances from July 13, 2021 until April 13, 2026. The Company will meet this objective using a 5-year interest rate swap with a notional amount of $5 million to pay interest at a fixed rate of 0.74% and receive interest at a variable rate equal to the 3-month LIBOR rate. Since the rate paid on the FHLB advances is expected to move closely with changes in the 3-month LIBOR, the Company anticipates that the changes in derivative cash flows will be effective in hedging the changes in FHLB debt cash flows. On March 27, 2020, the SBA established a loan program, the Paycheck Protection Program (“PPP”), which was added to the SBA’s 7(a) loan program by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (such loans, “PPP Loans”). Section 1102(a)(1)(B) of the CARES Act provides that PPP Loans are fully guaranteed as to principal and interest by the SBA. As of May 12, 2020, the Bank made 249 PPP Loans with aggregate outstanding principal balances of $31.8 million. On April 16, 2020, the Bank established its Paycheck Protection Program Liquidity Facility (“PPPLF”). The PPPLF allows us to request advances from the Federal Reserve Bank of Boston. Under the PPPLF, advances must be secured by pledges of PPP Loans. The interest rate applicable to any advance made under the PPPLF is 35 basis points. As of May 12, 2020, $25.7 million of PPPLF advances are outstanding and collateralized by 156 PPP Loans. As of May 12, 2020, we have provided temporary payment relief for 118 loans with aggregate outstanding principal balances of $45.4 million. These temporary modifications consisted of 50 commercial loans and 68 residential loans with aggregate outstanding principal balances of $32.0 million and $13.3 million, respectively. There are many uncertainties regarding the COVID-19 pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors and business partners. We are unable to predict the impact that COVID-19 will have on our financial position and operating results due to numerous uncertainties. The Company expects to continue to assess the evolving impact of COVID-19 and intends to adjust its responses accordingly. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of First Seacoast Bancorp (the “Company”) were prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim consolidated financial information, general practices within the banking industry and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of these consolidated financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire year. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 27, 2020. The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, First Seacoast Bank (the “Bank”), and the Bank’s wholly owned subsidiary, FSB Service Corporation, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
Corporate Structure | Corporate Structure The Company is the holding company for the Bank (formerly named Federal Savings Bank). Effective July 16, 2019, pursuant to a Plan of Reorganization from Mutual Savings Bank to Mutual Holding Company and Stock Issuance Plan (the “Plan of Reorganization”), the Bank reorganized into the mutual holding company structure and the Company completed a concurrent stock offering (collectively, the “Reorganization”). In the stock offering, the Company sold a total of 2,676,740 shares of common stock, which included 238,473 shares sold to the First Seacoast Bank Employee Stock Ownership Plan (the “ESOP”), at a price of $10.00 per share. In addition, as part of the Reorganization, the Company issued 3,345,925 shares of common stock to First Seacoast Bancorp, MHC (the “MHC”), the Bank’s parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc. (the “Foundation”), a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. The Company’s common stock began trading on the NASDAQ Capital Market under the symbol “FSEA” on July 17, 2019. Pursuant to the Plan of Reorganization, the Bank adopted an employee stock ownership plan (“ESOP”), which purchased 238,473 shares of common stock in the stock offering with the proceeds of a loan from the Company. As a result of the Reorganization, a total of 6,083,500 shares of common stock of the Company are issued and outstanding, of which 55% are issued to the MHC, 44% were sold to the Bank’s eligible members, the ESOP, and certain other persons in the stock offering, and 1% were contributed to the Foundation. Expenses incurred related to the offering were $1.6 million and were deducted from the stock offering proceeds. The Bank focuses on four core services that center around customer needs. The core services include residential lending, commercial banking, personal banking and wealth management. The Bank offers a full range of commercial and consumer banking services through its network of five full-service branch locations. Banking services, the Company’s only reportable operating segment, is managed as a single strategic unit. The Bank is engaged principally in the business of attracting deposits from the public and investing those deposits. The Bank invests those funds in various types of loans, including residential and commercial real estate, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities. Deposits at the Bank are insured by the Federal Deposit and Insurance Corporation (“FDIC”) for the maximum amount permitted by FDIC regulations. Investment management services are offered at the Company’s full-service wealth management office in Dover, New Hampshire. The assets held for wealth management customers are not assets of the Company and, accordingly, are not reflected in the accompanying balance sheets. Assets under management totaled approximately $46.6 million and $49.3 million at March 31, 2020 and December 31, 2019, respectively. Our wealth management group, FSB Wealth Management, assists individuals and families in building and preserving their wealth by providing investment services. The investment management group manages portfolios utilizing a variety of investment products. This group also provides a full-service brokerage offering equities, mutual funds, life insurance and annuity products. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards As an “emerging growth company,” as defined in Title 1 of Jumpstart Our Business Startups (JOBS) Act, the Company has elected to use the extended transition period to delay adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As a result, the Company’s consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards. As of March 31, 2020 In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848), In February 2020, the FASB issued ASU 2020-2, “Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).” In January 2020, the FASB issued ASU 2020-1, “Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and T 815 (A Consensus of the Emerging Issues Task Force),” In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses,” Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Leases (Topic 842)” Targeted Improvements to Accounting for Hedging Activities,” In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842).” Codification Improvements to Topic 842, Leases,” Leases (Topic 842) – Targeted Improvements,” In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments-Credit Losses Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses, Topic 326 In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20).” |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Available For Sale Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of March 31, 2020 and December 31, 2019: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 1,000 $ 17 $ — $ 1,017 U.S. Government agency small business administration pools guaranteed by SBA 2,622 38 — 2,660 Collateralized mortgage obligations issued by the FHLMC 900 25 — 925 Residential mortgage backed securities 3,103 71 — 3,174 Municipal bonds 34,885 1,063 (220 ) 35,728 $ 42,510 $ 1,214 $ (220 ) $ 43,504 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) U.S. Government-sponsored enterprises obligations $ 9,000 $ 11 $ (14 ) $ 8,997 U.S. Government agency small business administration pools guaranteed by SBA 2,760 — (20 ) 2,740 Collateralized mortgage obligations issued by the FHLMC 986 — (6 ) 980 Residential mortgage backed securities 3,186 4 (2 ) 3,188 Municipal bonds 28,138 800 (58 ) 28,880 $ 44,070 $ 815 $ (100 ) $ 44,785 |
Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity | The amortized cost and fair values of available-for-sale securities at March 31, 2020 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (Dollars in thousands) March 31, 2020 Due after one year through five years $ — $ — Due after five years through ten years 1,000 1,017 Due after ten years 34,885 35,728 U.S. Government-sponsored enterprises obligations and municipal bonds $ 35,885 $ 36,745 U.S. Government agency small business pools guaranteed by SBA 2,622 2,660 Collateralized mortgage obligations issued by the FHLMC 900 925 Residential mortgage backed securities 3,103 3,174 Total $ 42,510 $ 43,504 |
Summary of gross unrealized losses and fair value for those investments with unrealized losses | The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2020 and December 31, 2019: Less than 12 Months More than 12 Months Total Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) March 31, 2020 U.S. Government sponsored enterprises obligations — $ — $ — — $ — $ — $ — $ — U.S. Government agency small business administration pools guaranteed by SBA — — — — — — — — Collateralized mortgage obligations issued by the FHLMC — — — — — — — — Residential mortgage backed securities — — — — — — — — Municipal bonds 21 8,350 (220 ) — — — 8,350 (220 ) 21 $ 8,350 $ (220 ) — $ — $ — $ 8,350 $ (220 ) December 31, 2019 U.S. Government sponsored enterprises obligations 2 $ 1,995 $ (5 ) 1 $ 1,991 $ (9 ) $ 3,986 $ (14 ) U.S. Government agency small business administration pools guaranteed by SBA 2 2,740 (20 ) — — — 2,740 (20 ) Collateralized mortgage obligations issued by the FHLMC 1 980 (6 ) — — — 980 (6 ) Residential mortgage backed securities 1 999 (2 ) — — — 999 (2 ) Municipal bonds 8 4,052 (58 ) — — — 4,052 (58 ) 14 $ 10,766 $ (91 ) 1 $ 1,991 $ (9 ) $ 12,757 $ (100 ) |
Summary of sales proceeds and gross realized gains and losses on available for sale securities | Sales proceeds and gross realized gains and losses on available for sale securities were as follows for the three months ended: March 31, 2020 2019 (Dollars in thousands) Sales proceeds $ 15,731 $ 1,480 Gross realized gains 118 4 Gross realized losses (4 ) (12 ) Net realized gains (losses) $ 114 $ (8 ) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consisted of the following at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in thousands) Commercial real estate (CRE) $ 68,231 $ 70,194 Multifamily (MF) 6,299 4,888 Commercial and industrial (C+I) 23,758 24,676 Acquisition, development, and land (ADL) 20,581 18,844 1-4 family residential (RES) 216,775 213,322 Home equity line of credit (HELOC) 10,566 10,123 Consumer (CON) 1,919 1,752 Total loans 348,129 343,799 Net deferred loan costs 1,071 1,056 Allowance for loan losses (3,009 ) (2,875 ) Total loans, net $ 346,191 $ 341,980 |
Schedule Of Allowance For Loans And Leases Receivable Classification | Changes in the allowance for loan losses (“ALL”) for the three months ended March 31, 2020 and 2019 by portfolio segment are summarized as follows: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total Balance, December 31, 2018 $ 560 $ 22 $ 232 $ 88 $ 1,593 $ 69 $ 7 $ 235 $ 2,806 Provision for loan losses 84 (1 ) (12 ) 55 (8 ) (18 ) (2 ) (98 ) — Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Balance, March 31, 2019 644 21 220 143 1,585 51 5 137 2,806 Balance, December 31, 2019 781 23 350 145 1,503 52 18 3 2,875 Provision for loan losses (4 ) 25 (63 ) (10 ) 140 27 2 (2 ) 115 Charge-offs — — — — — — — — — Recoveries 19 — — — — — — — 19 Balance, March 31, 2020 $ 796 $ 48 $ 287 $ 135 $ 1,643 $ 79 $ 20 $ 1 $ 3,009 As of March 31, 2020 and December 31, 2019, information about loans and the ALL by portfolio segment are summarized below: (Dollars in thousands) CRE MF C+I ADL RES HELOC CON Unallocated Total March 31, 2020 Loan Balances Individually evaluated for impairment $ 108 $ — $ 1,044 $ — $ 65 $ — $ — $ — $ 1,217 Collectively evaluated for impairment 68,123 6,299 22,714 20,581 216,710 10,566 1,919 — 346,912 Total $ 68,231 $ 6,299 $ 23,758 $ 20,581 $ 216,775 $ 10,566 $ 1,919 $ — $ 348,129 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 796 48 287 135 1,643 79 20 1 3,009 Total $ 796 $ 48 $ 287 $ 135 $ 1,643 $ 79 $ 20 $ 1 $ 3,009 December 31, 2019 Loan Balances Individually evaluated for impairment $ 109 $ — $ 996 $ — $ 66 $ — $ — $ — $ 1,171 Collectively evaluated for impairment 70,085 4,888 23,680 18,844 213,256 10,123 1,752 — 342,628 Total $ 70,194 $ 4,888 $ 24,676 $ 18,844 $ 213,322 $ 10,123 $ 1,752 $ — $ 343,799 ALL related to the loans Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 781 23 350 145 1,503 52 18 3 2,875 Total $ 781 $ 23 $ 350 $ 145 $ 1,503 $ 52 $ 18 $ 3 $ 2,875 |
Past Due Financing Receivables | The following is an aged analysis of past due loans by portfolio segment as of March 31, 2020: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 68,231 $ 68,231 $ — MF — — — — 6,299 6,299 — C+I 292 — 967 1,259 22,499 23,758 967 ADL — — — — 20,581 20,581 — RES 43 88 65 196 216,579 216,775 65 HELOC — 9 — 9 10,557 10,566 — CON — — — — 1,919 1,919 — $ 335 $ 97 $ 1,032 $ 1,464 $ 346,665 $ 348,129 $ 1,032 The following is an aged analysis of past due loans by portfolio segment as of December 31, 2019: (Dollars in thousands) 30-59 Days 60-89 Days 90 + Days Total Past Due Current Total Loans Non-Accrual Loans CRE $ — $ — $ — $ — $ 70,194 $ 70,194 $ — MF — — — — 4,888 4,888 — C+I — — 996 996 23,680 24,676 996 ADL — — — — 18,844 18,844 — RES — 19 66 85 213,237 213,322 66 HELOC — — — — 10,123 10,123 — CON — — — — 1,752 1,752 — $ — $ 19 $ 1,062 $ 1,081 $ 342,718 $ 343,799 $ 1,062 |
Impaired Financing Receivables | The following table provides information on impaired loans as of March 31, 2020 and December 31, 2019: (Dollars in thousands) Recorded Carrying Value Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2020 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I 967 1,038 — 982 — ADL — — — — — RES 65 65 — 65 — HELOC — — — — — CON — — — — — Total impaired loans $ 1,032 $ 1,103 $ — $ 1,047 $ — December 31, 2019 With no related allowance recorded: CRE $ — $ — $ — $ — $ — MF — — — — — C+I 996 1,057 — 344 36 ADL — — — — — RES 66 66 — 67 — HELOC — — — — — CON — — — — — Total impaired loans $ 1,062 $ 1,123 $ — $ 411 $ 36 |
Financing Receivble Credit Quality Indicators | The following presents the internal risk rating of loans by portfolio segment as of March 31, 2020: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 68,123 $ — $ 108 $ 68,231 MF 6,299 — — 6,299 C+I 21,258 2,211 289 23,758 ADL 20,581 — — 20,581 RES 216,710 — 65 216,775 HELOC 10,566 — — 10,566 CON 1,919 — — 1,919 Total $ 345,456 $ 2,211 $ 462 $ 348,129 The following presents the internal risk rating of loans by portfolio segment as of December 31, 2019: (Dollars in thousands) Pass Special Mention Substandard Total CRE $ 70,085 $ — $ 109 $ 70,194 MF 4,888 — — 4,888 C+I 22,208 2,166 302 24,676 ADL 18,844 — — 18,844 RES 213,256 — 66 213,322 HELOC 10,123 — — 10,123 CON 1,752 — — 1,752 Total $ 341,156 $ 2,166 $ 477 $ 343,799 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers And Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following summarizes activity in mortgage servicing rights for the three months ended March 31, 2020 and 2019: March 31, (Dollars in thousands) 2020 2019 Balance, December 31, $ 397 $ 479 Additions 43 11 Payoffs (26 ) (11 ) Change in fair value due to change in assumptions (72 ) (35 ) Balance, March 31, $ 342 $ 444 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposit Liabilities | Deposits consisted of the following at March 31, 2020 and December 31, 2019: (Dollars in thousands) March 31, 2020 December 31, 2019 NOW and demand deposits $ 114,931 $ 115,024 Money market deposits 66,136 65,611 Savings deposits 40,599 39,962 Time deposits of $250,000 and greater 13,884 13,481 Time deposits less than $250,000 47,175 47,538 $ 282,725 $ 281,616 |
Maturities of Time Deposits | At March 31, 2020, the scheduled maturities of time deposits were as follows (in thousands): 2020 $ 45,522 2021 10,661 2022 3,683 2023 727 2024 445 2025 21 $ 61,059 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | A summary of borrowings from the FHLB is as follows (dollars in thousands): March 31, 2020 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 25,680 2020 0.36% to 2.19 % – fixed 2,262 2022 0.00 % – fixed 18,800 2024 0.00% to 1.69% – fixed 20,000 2025 1.35% to 1.52% – fixed 250 2028 0.00 % – fixed $ 66,992 December 31, 2019 Principal Amounts Maturity Dates Interest Rates (Dollars in thousands) $ 44,907 2020 1.77% to 2.19 % – fixed 2,262 2022 0.00% – fixed 18,800 2024 0.00% to 1.69% – fixed 250 2028 0.00% – fixed $ 66,219 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Company Compensation Expense for the ESOP | the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. March 31, 2020 Shares held by the ESOP include the following: Allocated 11,924 Committed to be allocated 2,981 Unallocated 223,568 Total 238,473 |
Schedule of Funded Status Valuation Report Percentage | The funded status (fair value of plan assets divided by funding target) as of July 1, 2019 is as follows: 2019 Valuation Report 92.61 % (1) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | A summary of the reclassification adjustments out of accumulated other comprehensive income for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Affected Line Item in Statements of Income (Gains) losses on securities available for sale $ (114 ) $ 8 Securities gains (losses), net Tax effect 31 (2 ) Income tax expense $ (83 ) $ 6 Net income Net amortization of premium on securities $ 48 $ 26 Interest on debt securities Tax effect (13 ) (7 ) Income tax expense $ 35 $ 19 Net income |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Actual Requirement Fully Phased-In (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020 Total Capital (to risk- weighted assets) $ 49,784 18.26 % $ 21,811 8.0 % $ 28,627 10.5 % Tier I Capital (to risk- weighted assets) 46,717 17.14 16,354 6.0 23,168 8.5 Tier I Capital (to average assets) 46,717 11.49 16,264 4.0 16,264 4.0 Common Equity Tier 1 (to risk-weighted assets) 46,717 17.14 12,265 4.5 19,079 7.0 Minimum Capital Minimum To Be Well Capitalized Under Prompt Corrective Actual Requirement Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total Capital (to risk-weighted assets) $ 49,259 18.52 % $ 21,278 8.0 % $ 27,928 10.5 % Tier I Capital (to risk-weighted assets) 46,321 17.41 15,961 6.0 22,611 8.5 Tier I Capital (to average assets) 46,321 11.41 16,236 4.0 16,236 4.0 Common Equity Tier 1 (to risk-weighted assets) 46,321 17.41 11,971 4.5 18,621 7.0 |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial assets measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 (Dollars in thousands) March 31, 2020 Mortgage servicing rights $ 342 $ — $ — $ 342 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 1,017 — 1,017 — U.S Government agency small business administration pools guaranteed by the SBA 2,660 — 2,660 — Collateralized mortgage obligations issued by the FHLMC 925 — 925 — Residential mortgage backed securities 3,174 — 3,174 — Municipal bonds 35,728 — 35,728 — $ 43,846 $ — $ 43,504 $ 342 Total Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2019 Mortgage servicing rights $ 397 $ — $ — $ 397 Securities available-for-sale: U.S. Government-sponsored enterprises obligations 8,997 — 8,997 — U.S Government agency small business administration pools guaranteed by the SBA 2,740 — 2,740 — Collateralized mortgage obligations issued by the FHLMC 980 — 980 — Residential mortgage backed securities 3,188 — 3,188 — Municipal bonds 28,880 — 28,880 — $ 45,182 $ — $ 44,785 $ 397 |
Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis | For Level 3 assets measured at fair value on a recurring basis as of March 31, 2020, and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: March 31, 2020 December 31, 2019 (Dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Weighted Average (1) Fair Value March 31, 2020 Mortgage Servicing Rights Discounted Cash Flow Prepayment Rate 9.05% - 37.04% 17.75% $ 342 13.08% $ 397 Discount Rate 9.00% - 9.00% 9.00% 9.50% Delinquency Rate 2.44% - 3.22% 2.52% 2.48% Default Rate 0.10% - 0.26% 0.12% 0.09% (1) Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Value Measurements, Nonrecurring | The following summarizes assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019: Fair Value Measurements at Reporting Date Using: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 March 31, 2020 Impaired Loans $ 967 $ — $ — $ 967 December 31, 2019 Impaired Loans $ 996 $ — $ — $ 996 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following is a summary of the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input March 31, 2020 Impaired Loans $ 967 Market Approach Appraisal of Collateral Selling Costs Provision December 31, 2019 Impaired Loans $ 996 Market Approach Appraisal of Collateral Selling Costs Provision |
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments at March 31, 2020 and December 31, 2019 are as follows: (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 March 31, 2020 Financial Assets: Cash and due from banks $ 4,375 $ 4,375 $ 4,375 $ — $ — Interest-bearing time deposits with other banks 2,488 2,488 — 2,488 — Federal Home Loan Bank stock 3,044 3,044 — 3,044 — Bank-owned life insurance 4,272 4,272 — 4,272 — Loans, net 346,191 344,307 — — 344,307 Accrued interest receivable 1,239 1,239 1,239 — — Financial Liabilities: Deposits $ 282,725 $ 285,121 $ 223,555 $ 61,566 $ — Advances from Federal Home Loan Bank 66,992 67,599 — 67,599 — Mortgagors’ tax escrow 1,890 1,890 — 1,890 — December 31, 2019 Financial Assets: Cash and due from banks $ 4,009 $ 4,009 $ 4,009 $ — $ — Interest-bearing time deposits with other banks 2,735 2,735 — 2,735 — Federal Home Loan Bank stock 2,971 2,971 — 2,971 — Bank-owned life insurance 4,267 4,267 — 4,267 — Loans, net 341,980 336,847 — — 336,847 Accrued interest receivable 1,235 1,235 1,235 — — Financial Liabilities: Deposits $ 281,616 $ 281,707 $ 220,596 $ 61,111 $ — Advances from Federal Home Loan Bank 66,219 66,060 — 66,060 — Mortgagors’ tax escrow 586 586 — 586 — |
Fair Value, Inputs, Level 3 [Member] | |
Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | For the three months ended March 31, 2020, and March 31, 2019, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (Dollars in thousands) Mortgage Servicing Rights (1) Three Months Ended March 31, 2020 Balance as of January 1, 2020 $ 397 Included in Net Income (55 ) Balance as of March 31, 2020 $ 342 Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of March 31, 2020 $ — Three Months Ended March 31, 2019 Balance as of January 1, 2019 $ 479 Included in Net Income (35 ) Balance as of March 31, 2019 $ 444 Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of March 31, 2019 $ — (1) Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |
Jul. 17, 2019USD ($)shares | Mar. 31, 2020USD ($)Service$ / sharesshares | Dec. 31, 2019USD ($)shares | |
Accounting Policies [Abstract] | |||
Stock issued during period,initial public offer | 2,676,740 | ||
Repurchase of share ESOP | 238,473 | ||
Employee stock ownership price per share | $ / shares | $ 10 | ||
Plan of reorganization, description of equity securities issued or to be issued | In addition, as part of the Reorganization, the Company issued 3,345,925 shares of common stock to First Seacoast Bancorp, MHC (the “MHC”), the Bank’s parent mutual holding company, and 60,835 shares of common stock and $150,000 in cash to First Seacoast Community Foundation, Inc. (the “Foundation”), a charitable foundation formed in connection with the reorganization and dedicated to supporting charitable organizations operating in the Bank’s local community. The Company’s common stock began trading on the NASDAQ Capital Market under the symbol “FSEA” on July 17, 2019. Pursuant to the Plan of Reorganization, the Bank adopted an employee stock ownership plan (“ESOP”), which purchased 238,473 shares of common stock in the stock offering with the proceeds of a loan from the Company. As a result of the Reorganization, a total of 6,083,500 shares of common stock of the Company are issued and outstanding, of which 55% are issued to the MHC, 44% were sold to the Bank’s eligible members, the ESOP, and certain other persons in the stock offering, and 1% were contributed to the Foundation. | ||
Stock issued to mutual holding company as part of reorganization | 3,345,925 | ||
Stock issued during period shares to charitable organisations | 60,835 | ||
Cash transferred to charitable foundation as part of reorganization | $ | $ 150,000 | ||
Common stock, shares, issued | 6,083,500 | 6,083,500 | 6,083,500 |
ESOP,unearned compensation, shares | 238,473 | ||
Percentage of common stock shares offered to eligible members | 44.00% | ||
Percentage of common stock shares offered to charitable foundation | 1.00% | ||
Equity method investment ownership percentage | 55.00% | ||
Stock issuance cost | $ | $ 1,600,000 | ||
Number of core services | Service | 4 | ||
Assets under management | $ | $ 46,600,000 | $ 49,300,000 | |
Emerging growth of company status | (i) the last day of the fiscal year of the Company during which it had total annual gross revenues of $1.07 billion (as adjusted for inflation) or more; (ii) the last day of the fiscal year of the Company following the fifth anniversary of the effective date of the Company’s initial public offering; (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates). |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of amortized cost and fair value of securities available-for-sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | $ 42,510 | $ 44,070 |
Gross Unrealized Gains | 1,214 | 815 |
Gross Unrealized Losses | (220) | (100) |
Fair Value | 43,504 | 44,785 |
U.S. Government-sponsored enterprises obligations [Member] | ||
Amortized Cost | 1,000 | 9,000 |
Gross Unrealized Gains | 17 | 11 |
Gross Unrealized Losses | (14) | |
Fair Value | 1,017 | 8,997 |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Amortized Cost | 2,622 | 2,760 |
Gross Unrealized Gains | 38 | |
Gross Unrealized Losses | (20) | |
Fair Value | 2,660 | 2,740 |
Collateralized mortgage obligations issued by the FHLMC [Member] | ||
Amortized Cost | 900 | 986 |
Gross Unrealized Gains | 25 | |
Gross Unrealized Losses | (6) | |
Fair Value | 925 | 980 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | 3,103 | 3,186 |
Gross Unrealized Gains | 71 | 4 |
Gross Unrealized Losses | (2) | |
Fair Value | 3,174 | 3,188 |
Municipal bonds [Member] | ||
Amortized Cost | 34,885 | 28,138 |
Gross Unrealized Gains | 1,063 | 800 |
Gross Unrealized Losses | (220) | (58) |
Fair Value | $ 35,728 | $ 28,880 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of amortized cost and fair values of available-for-sale securities by contractual maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Due after five years through ten years, Amortized Cost | $ 1,000 | |
Due after ten years, Amortized Cost | 34,885 | |
Total U.S. Government-sponsored enterprises obligations and municipal bonds, Amortized Cost | 35,885 | |
Mortgage-backed securities, Amortized Cost | 42,510 | $ 44,070 |
Due after five years through ten years, Fair Value | 1,017 | |
Due after ten years, Fair Value | 35,728 | |
Total U.S. Government-sponsored enterprises obligations and municipal bonds, Fair Value | 36,745 | |
Mortgage-backed securities, Fair Value | 43,504 | 44,785 |
U.S. Government agency small business pools guaranteed by SBA [Member] | ||
Mortgage-backed securities, Amortized Cost | 2,622 | 2,760 |
Mortgage-backed securities, Fair Value | 2,660 | 2,740 |
Collateralized mortgage obligations issued by the FHLMC [Member] | ||
Mortgage-backed securities, Amortized Cost | 900 | 986 |
Mortgage-backed securities, Fair Value | 925 | 980 |
Residential mortgage-backed securities | ||
Mortgage-backed securities, Amortized Cost | 3,103 | 3,186 |
Mortgage-backed securities, Fair Value | $ 3,174 | $ 3,188 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Summary of gross unrealized losses and fair value for those investments with unrealized losses (Detail) $ in Thousands | Mar. 31, 2020USD ($)Number | Dec. 31, 2019USD ($)Number |
Less than 12 Months, Number of Securities | Number | 21 | 14 |
Less than 12 Months, Fair Value | $ 8,350 | $ 10,766 |
Less than 12 Months, Unrealized Losses | (220) | $ (91) |
More than 12 Months, Number of Securities | Number | 1 | |
More than 12 Months, Fair Value | $ 1,991 | |
More than 12 Months, Unrealized Losses | (9) | |
Total, Fair Value | 8,350 | 12,757 |
Total, Unrealized Losses | $ (220) | $ (100) |
U.S. Government-sponsored enterprises obligations [Member] | ||
Less than 12 Months, Number of Securities | Number | 2 | |
Less than 12 Months, Fair Value | $ 1,995 | |
Less than 12 Months, Unrealized Losses | $ (5) | |
More than 12 Months, Number of Securities | Number | 1 | |
More than 12 Months, Fair Value | $ 1,991 | |
More than 12 Months, Unrealized Losses | (9) | |
Total, Fair Value | 3,986 | |
Total, Unrealized Losses | $ (14) | |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Less than 12 Months, Number of Securities | Number | 2 | |
Less than 12 Months, Fair Value | $ 2,740 | |
Less than 12 Months, Unrealized Losses | (20) | |
Total, Fair Value | 2,740 | |
Total, Unrealized Losses | $ (20) | |
Collateralized mortgage obligations issued by the FHLMC [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 980 | |
Less than 12 Months, Unrealized Losses | (6) | |
Total, Fair Value | 980 | |
Total, Unrealized Losses | $ (6) | |
Residential mortgage backed securities [Member] | ||
Less than 12 Months, Number of Securities | Number | 1 | |
Less than 12 Months, Fair Value | $ 999 | |
Less than 12 Months, Unrealized Losses | (2) | |
Total, Fair Value | 999 | |
Total, Unrealized Losses | $ (2) | |
Municipal bonds [Member] | ||
Less than 12 Months, Number of Securities | Number | 21 | 8 |
Less than 12 Months, Fair Value | $ 8,350 | $ 4,052 |
Less than 12 Months, Unrealized Losses | (220) | (58) |
Total, Fair Value | 8,350 | 4,052 |
Total, Unrealized Losses | $ (220) | $ (58) |
Securities Available-for-Sale_4
Securities Available-for-Sale - Summary of sales proceeds and gross realized gains and losses on available for sale securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Available For Sale Securities [Abstract] | ||
Sales proceeds | $ 15,731 | $ 1,480 |
Gross realized gains | 118 | 4 |
Gross realized losses | (4) | (12) |
Net realized gains (losses) | $ 114 | $ (8) |
Securities Available-for-Sale_5
Securities Available-for-Sale - Additional Information (Detail) - Security | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Available For Sale Securities [Abstract] | ||
Number of holdings more than ten percentage of fair value of securities issued by single issuer | 0 | 0 |
Loans - Loans Consisted (Detail
Loans - Loans Consisted (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Total loans | $ 348,129 | $ 343,799 | ||
Net deferred loan costs | 1,071 | 1,056 | ||
Allowance for loan losses | (3,009) | (2,875) | $ (2,806) | $ (2,806) |
Net loans | 346,191 | 341,980 | ||
CRE [Member] | ||||
Total loans | 68,231 | 70,194 | ||
Allowance for loan losses | (796) | (781) | (644) | (560) |
MF [Member] | ||||
Total loans | 6,299 | 4,888 | ||
Allowance for loan losses | (48) | (23) | (21) | (22) |
C+I [Member] | ||||
Total loans | 23,758 | 24,676 | ||
Allowance for loan losses | (287) | (350) | (220) | (232) |
ADL [Member] | ||||
Total loans | 20,581 | 18,844 | ||
Allowance for loan losses | (135) | (145) | (143) | (88) |
RES [Member] | ||||
Total loans | 216,775 | 213,322 | ||
Allowance for loan losses | (1,643) | (1,503) | (1,585) | (1,593) |
HELOC [Member] | ||||
Total loans | 10,566 | 10,123 | ||
Allowance for loan losses | (79) | (52) | (51) | (69) |
CON [Member] | ||||
Total loans | 1,919 | 1,752 | ||
Allowance for loan losses | $ (20) | $ (18) | $ (5) | $ (7) |
Loans - Transactions In The All
Loans - Transactions In The Allowance For Loan Losses ("ALL") (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Balance | $ 2,875 | $ 2,806 |
Provision for loan losses | 115 | |
Recoveries | 19 | |
Balance | 3,009 | 2,806 |
CRE [Member] | ||
Balance | 781 | 560 |
Provision for loan losses | (4) | 84 |
Recoveries | 19 | |
Balance | 796 | 644 |
MF [Member] | ||
Balance | 23 | 22 |
Provision for loan losses | 25 | (1) |
Balance | 48 | 21 |
C+I [Member] | ||
Balance | 350 | 232 |
Provision for loan losses | (63) | (12) |
Balance | 287 | 220 |
ADL [Member] | ||
Balance | 145 | 88 |
Provision for loan losses | (10) | 55 |
Balance | 135 | 143 |
RES [Member] | ||
Balance | 1,503 | 1,593 |
Provision for loan losses | 140 | (8) |
Balance | 1,643 | 1,585 |
HELOC [Member] | ||
Balance | 52 | 69 |
Provision for loan losses | 27 | (18) |
Balance | 79 | 51 |
CON [Member] | ||
Balance | 18 | 7 |
Provision for loan losses | 2 | (2) |
Balance | 20 | 5 |
Unallocated [Member] | ||
Balance | 3 | 235 |
Provision for loan losses | (2) | (98) |
Balance | $ 1 | $ 137 |
Loans - Information About Loans
Loans - Information About Loans And The ALL By Portfolio Segment Are Summarized (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Individually evaluated for impairment | $ 1,217 | $ 1,171 | ||
Collectively evaluated for impairment | 346,912 | 342,628 | ||
Total | 348,129 | 343,799 | ||
Collectively evaluated for impairment | 3,009 | 2,875 | ||
Total | 3,009 | 2,875 | $ 2,806 | $ 2,806 |
CRE [Member] | ||||
Individually evaluated for impairment | 108 | 109 | ||
Collectively evaluated for impairment | 68,123 | 70,085 | ||
Total | 68,231 | 70,194 | ||
Collectively evaluated for impairment | 796 | 781 | ||
Total | 796 | 781 | 644 | 560 |
MF [Member] | ||||
Collectively evaluated for impairment | 6,299 | 4,888 | ||
Total | 6,299 | 4,888 | ||
Collectively evaluated for impairment | 48 | 23 | ||
Total | 48 | 23 | 21 | 22 |
C+I [Member] | ||||
Individually evaluated for impairment | 1,044 | 996 | ||
Collectively evaluated for impairment | 22,714 | 23,680 | ||
Total | 23,758 | 24,676 | ||
Collectively evaluated for impairment | 287 | 350 | ||
Total | 287 | 350 | 220 | 232 |
ADL [Member] | ||||
Collectively evaluated for impairment | 20,581 | 18,844 | ||
Total | 20,581 | 18,844 | ||
Collectively evaluated for impairment | 135 | 145 | ||
Total | 135 | 145 | 143 | 88 |
RES [Member] | ||||
Individually evaluated for impairment | 65 | 66 | ||
Collectively evaluated for impairment | 216,710 | 213,256 | ||
Total | 216,775 | 213,322 | ||
Collectively evaluated for impairment | 1,643 | 1,503 | ||
Total | 1,643 | 1,503 | 1,585 | 1,593 |
HELOC [Member] | ||||
Collectively evaluated for impairment | 10,566 | 10,123 | ||
Total | 10,566 | 10,123 | ||
Collectively evaluated for impairment | 79 | 52 | ||
Total | 79 | 52 | 51 | 69 |
CON [Member] | ||||
Collectively evaluated for impairment | 1,919 | 1,752 | ||
Total | 1,919 | 1,752 | ||
Collectively evaluated for impairment | 20 | 18 | ||
Total | 20 | 18 | 5 | 7 |
Unallocated [Member] | ||||
Collectively evaluated for impairment | 1 | 3 | ||
Total | $ 1 | $ 3 | $ 137 | $ 235 |
Loans - Analysis Of Past Due Lo
Loans - Analysis Of Past Due Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total Past Due | $ 1,464 | $ 1,081 |
Current | 346,665 | 342,718 |
Total | 348,129 | 343,799 |
Non-Accrual Loans | 1,032 | 1,062 |
CRE [Member] | ||
Current | 68,231 | 70,194 |
Total | 68,231 | 70,194 |
MF [Member] | ||
Current | 6,299 | 4,888 |
Total | 6,299 | 4,888 |
C+I [Member] | ||
Total Past Due | 1,259 | 996 |
Current | 22,499 | 23,680 |
Total | 23,758 | 24,676 |
Non-Accrual Loans | 967 | 996 |
ADL [Member] | ||
Current | 20,581 | 18,844 |
Total | 20,581 | 18,844 |
RES [Member] | ||
Total Past Due | 196 | 85 |
Current | 216,579 | 213,237 |
Total | 216,775 | 213,322 |
Non-Accrual Loans | 65 | 66 |
HELOC [Member] | ||
Total Past Due | 9 | |
Current | 10,557 | 10,123 |
Total | 10,566 | 10,123 |
CON [Member] | ||
Current | 1,919 | 1,752 |
Total | 1,919 | 1,752 |
30-59 Days Past Due [Member] | ||
Total Past Due | 335 | |
30-59 Days Past Due [Member] | C+I [Member] | ||
Total Past Due | 292 | |
30-59 Days Past Due [Member] | RES [Member] | ||
Total Past Due | 43 | |
60-89 Days Past Due [Member] | ||
Total Past Due | 97 | 19 |
60-89 Days Past Due [Member] | RES [Member] | ||
Total Past Due | 88 | 19 |
60-89 Days Past Due [Member] | HELOC [Member] | ||
Total Past Due | 9 | |
Greater than 90 Days [Member] | ||
Total Past Due | 1,032 | 1,062 |
Greater than 90 Days [Member] | C+I [Member] | ||
Total Past Due | 967 | 996 |
Greater than 90 Days [Member] | RES [Member] | ||
Total Past Due | $ 65 | $ 66 |
Loans - Provides Information On
Loans - Provides Information On Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Recorded Carrying Value | $ 1,032 | $ 1,062 |
Unpaid Principal Balance | 1,103 | 1,123 |
Average Recorded Investment | 1,047 | 411 |
Interest Income Recognized | 36 | |
C+I [Member] | ||
Recorded Carrying Value | 967 | 996 |
Unpaid Principal Balance | 1,038 | 1,057 |
Average Recorded Investment | 982 | 344 |
Interest Income Recognized | 36 | |
RES [Member] | ||
Recorded Carrying Value | 65 | 66 |
Unpaid Principal Balance | 65 | 66 |
Average Recorded Investment | $ 65 | $ 67 |
Loans - Internal Risk Rating Of
Loans - Internal Risk Rating Of Loans By Portfolio Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total Loans | $ 348,129 | $ 343,799 |
CRE [Member] | ||
Total Loans | 68,231 | 70,194 |
MF [Member] | ||
Total Loans | 6,299 | 4,888 |
C+I [Member] | ||
Total Loans | 23,758 | 24,676 |
ADL [Member] | ||
Total Loans | 20,581 | 18,844 |
RES [Member] | ||
Total Loans | 216,775 | 213,322 |
HELOC [Member] | ||
Total Loans | 10,566 | 10,123 |
CON [Member] | ||
Total Loans | 1,919 | 1,752 |
Pass [Member] | ||
Total Loans | 345,456 | 341,156 |
Pass [Member] | CRE [Member] | ||
Total Loans | 68,123 | 70,085 |
Pass [Member] | MF [Member] | ||
Total Loans | 6,299 | 4,888 |
Pass [Member] | C+I [Member] | ||
Total Loans | 21,258 | 22,208 |
Pass [Member] | ADL [Member] | ||
Total Loans | 20,581 | 18,844 |
Pass [Member] | RES [Member] | ||
Total Loans | 216,710 | 213,256 |
Pass [Member] | HELOC [Member] | ||
Total Loans | 10,566 | 10,123 |
Pass [Member] | CON [Member] | ||
Total Loans | 1,919 | 1,752 |
Special Mention [Member] | ||
Total Loans | 2,211 | 2,166 |
Special Mention [Member] | C+I [Member] | ||
Total Loans | 2,211 | 2,166 |
Substandard [Member] | ||
Total Loans | 462 | 477 |
Substandard [Member] | CRE [Member] | ||
Total Loans | 108 | 109 |
Substandard [Member] | C+I [Member] | ||
Total Loans | 289 | 302 |
Substandard [Member] | RES [Member] | ||
Total Loans | $ 65 | $ 66 |
Loans - Additional Information
Loans - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Loans outstanding | $ 5.4 | $ 5.2 |
Short-Term Loan Modification Program [Member] | ||
Loans, deferral payment period | 90 days | |
Loans, deferral extended payment period | 90 days | |
Loans, deferral maximum payment period | 180 days | |
Temporary payment relief provided for number of loans | Loan | 36 | |
Aggregate outstanding principal balance provided for temporary payment relief | $ 14.2 | |
Short-Term Loan Modification Program [Member] | Commercial Loans [Member] | ||
Temporary payment relief provided for number of loans | Loan | 10 | |
Aggregate outstanding principal balance provided for temporary payment relief | $ 7.1 | |
Short-Term Loan Modification Program [Member] | Residential Loans [Member] | ||
Temporary payment relief provided for number of loans | Loan | 26 | |
Aggregate outstanding principal balance provided for temporary payment relief | $ 7.1 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |||
Transferred Financial Assets Principal Amount Outstanding | $ 49,900 | $ 49,300 | |
Loan servicing loss | $ 25 | $ 5 | |
Servicing Assets and Servicing Liabilities at Fair Value Discount Rate | 9.00% | 9.50% | |
Servicing Assets and Servicing Liabilities at Fair Value prepayment speed | 17.75% | 8.58% | |
Servicing Assets and Servicing Liabilities at Fair Value weighted average default rate | 0.12% | 0.09% | |
Servicing Assets and Servicing Liabilities at Fair Value weighted average delinquency rate | 2.52% | 2.48% |
Loan Servicing - Summary Of Act
Loan Servicing - Summary Of Activity In Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Transfers And Servicing [Abstract] | ||
Balance, beginning of year | $ 397 | $ 479 |
Additions | 43 | 11 |
Payoffs | (26) | (11) |
Change in fair value due to change in assumptions | (72) | (35) |
Balance, end of year | $ 342 | $ 444 |
Deposits - Deposit Liabilities
Deposits - Deposit Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
NOW and demand deposits | $ 114,931 | $ 115,024 |
Money market deposits | 66,136 | 65,611 |
Savings deposits | 40,599 | 39,962 |
Time deposits of $250,000 and greater | 13,884 | 13,481 |
Time deposits less than $250,000 | 47,175 | 47,538 |
Total deposits | $ 282,725 | $ 281,616 |
Deposits - Time Deposit Maturit
Deposits - Time Deposit Maturities (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Deposits [Abstract] | |
2020 | $ 45,522 |
2021 | 10,661 |
2022 | 3,683 |
2023 | 727 |
2024 | 445 |
2025 | 21 |
Total | $ 61,059 |
Deposits - Additional informati
Deposits - Additional information (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Time Deposits [Member] | ||
Brokered deposits | $ 0 | $ 0 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances by Branch of FHLB Bank (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Principal Amounts | $ 66,992 | $ 66,219 |
Federal Home Loan Bank Advances One [Member] | ||
Principal Amounts | $ 25,680 | $ 44,907 |
Maturity Dates | 2020 | 2020 |
Federal Home Loan Bank Advances One [Member] | Minimum [Member] | ||
Interest Rates | 0.36% | 1.77% |
Federal Home Loan Bank Advances One [Member] | Maximum [Member] | ||
Interest Rates | 2.19% | 2.19% |
Federal Home Loan Bank Advances Two [Member] | ||
Principal Amounts | $ 2,262 | $ 2,262 |
Maturity Dates | 2022 | 2022 |
Interest Rates | 0.00% | 0.00% |
Federal Home Loan Bank Advances Three [Member] | ||
Principal Amounts | $ 18,800 | $ 18,800 |
Maturity Dates | 2024 | 2024 |
Federal Home Loan Bank Advances Three [Member] | Minimum [Member] | ||
Interest Rates | 0.00% | 0.00% |
Federal Home Loan Bank Advances Three [Member] | Maximum [Member] | ||
Interest Rates | 1.69% | 1.69% |
Federal Home Loan Bank Advances Four [Member] | ||
Principal Amounts | $ 20,000 | $ 250 |
Maturity Dates | 2025 | 2028 |
Interest Rates | 0.00% | |
Federal Home Loan Bank Advances Four [Member] | Minimum [Member] | ||
Interest Rates | 1.35% | |
Federal Home Loan Bank Advances Four [Member] | Maximum [Member] | ||
Interest Rates | 1.52% | |
Federal Home Loan Bank Advances Five [Member] | ||
Principal Amounts | $ 250 | |
Maturity Dates | 2028 | |
Interest Rates | 0.00% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Banks unused remaining borrowing capacity | $ 75.5 | $ 81.7 |
Federal home loan bank maximum borrowing capacity | 3 | |
Fed Funds borrowing [Member] | ||
Fed funds borrowing capacity | $ 5 |
Employee Benefits - Additional
Employee Benefits - Additional information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 17, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares committed to be released each year,ESOP | 2,981 | ||||
Stock Repurchase | 238,473 | ||||
Employee stock option unallocated shares fair value | $ 1,300 | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 50,000 | $ 34,000 | |||
Deferred Compensation Liability, Current and Noncurrent | 1,526,000 | $ 1,607,000 | |||
Scenario Forecast [Member] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | $ 360,000 | ||||
Pentegra DB Plan [Member] | |||||
Pension Cost (Reversal of Cost) | 99,000 | 87,000 | |||
Salary Continuation Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Liability, Defined Benefit Plan | $ 551,000 | 590,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.00% | ||||
Employee Salary Incremental Percent | 5.00% | ||||
Defined Contribution Plan, Cost | $ 27,000 | 23,000 | |||
Executive Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Liability, Defined Benefit Plan | $ 171,000 | $ 171,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | |||
Endorsement Method Split Dollar Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Pension Cost (Reversal of Cost) | $ 0 | $ (6,000) | |||
Liability, Defined Benefit Plan | 33,000 | 33,000 | |||
Deferred Directors Supplemental Retirement Plan [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Pension Cost (Reversal of Cost) | 10,000 | $ 32,000 | |||
Liability, Defined Benefit Plan | $ 532,000 | $ 581,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 6.25% | 6.25% | |||
Deferred Compensation Liability, Current and Noncurrent | $ 240,000 | $ 233,000 | |||
First Seacoast Bank Employee Stock Ownership Plan [Member] | |||||
Number of shares committed to be released each year,ESOP | 11,924 | ||||
Employee stock option compensation recognized | $ 26,000 | ||||
Employee stock option plan [Member] | |||||
Stock Repurchase | 238,473 | ||||
Remaining loan maturity date | Dec. 31, 2038 | ||||
Percentage of Purchase price common stock | 100.00% | ||||
Remaining Principal Balance of Debt | $ 2,300,000 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Company Compensation Expense for the ESOP (Detail) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
Employee Stock Ownership Plan E S O P Shares In E S O P [Abstract] | ||
Allocated | 11,924 | |
Committed to be allocated | 2,981 | |
Unallocated | 223,568 | 226,549 |
Total | 238,473 |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of Plan Assets Divided by Funding Target (Detail) | Jul. 01, 2019 | |
Pension Plan [Member] | ||
Percentage of funding status | 92.61% | [1] |
[1] | Fair value of plan assets reflects any contributions received through June 30, 2019. |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Other Comprehensive Income Loss [Abstract] | ||
(Gains) losses on securities available for sale | $ (114) | $ 8 |
Tax effect | 31 | (2) |
Net income | (83) | 6 |
Net amortization of premium on securities | 48 | 26 |
Tax effect | (13) | (7) |
Net income | $ 35 | $ 19 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Total Capital (to risk-weighted assets) | 8.00% | 8.00% | 8.00% |
Tier I Capital (to risk-weighted assets) | 6.00% | 6.00% | 6.00% |
Tier I Capital (to average assets) | 4.00% | 4.00% | 4.00% |
Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% | 4.50% |
Capital Conservation Buffer Ratio | 2.50% | ||
Fully Phased In [Member] | |||
Total Capital (to risk-weighted assets) | 10.50% | 10.50% | 10.50% |
Tier I Capital (to risk-weighted assets) | 8.50% | 8.50% | 8.50% |
Tier I Capital (to average assets) | 4.00% | 4.00% | |
Common Equity Tier 1 (to risk-weighted assets) | 7.00% | 7.00% | 7.00% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital Requirements (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Actual, Total Capital (to risk- weighted assets) | $ 49,784 | $ 49,259 | |
Actual, Tier I Capital (to risk- weighted assets) | 46,717 | 46,321 | |
Actual, Tier I Capital (to average assets) | 46,717 | 46,321 | |
Actual, Common Equity Tier 1 (to risk-weighted assets) | $ 46,717 | $ 46,321 | |
Actual Ratio, Total Capital (to risk- weighted assets) | 18.26% | 18.52% | |
Actual Ratio, Tier I Capital (to risk- weighted assets) | 17.14% | 17.41% | |
Actual Ratio, Tier I Capital (to average assets) | 11.49% | 11.41% | |
Actual Ratio, Common Equity Tier 1 (to risk-weighted assets) | 17.14% | 17.41% | |
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 21,811 | $ 21,278 | |
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 16,354 | 15,961 | |
Minimum Capital Requirement, Tier I Capital (to average assets) | 16,264 | 16,236 | |
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 12,265 | $ 11,971 | |
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 8.00% | 8.00% | 8.00% |
Minimum Capital Requirement Ratio, Tier I Capital (to risk-weighted assets) | 6.00% | 6.00% | 6.00% |
Minimum Capital Requirement Ratio, Tier I Capital (to average assets) | 4.00% | 4.00% | 4.00% |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 4.50% | 4.50% | 4.50% |
Minimum To Be Well Capitalized Under Prompt Corrective, Total Capital (to risk-weighted assets) | $ 27,928 | ||
Minimum To Be Well Capitalized Under Prompt Corrective, Tier I Capital (to risk-weighted assets) | 22,611 | ||
Minimum To Be Well Capitalized Under Prompt Corrective, Tier I Capital (to average assets) | 16,236 | ||
Minimum To Be Well Capitalized Under Prompt Corrective, Common Equity Tier 1 (to risk-weighted assets) | $ 18,621 | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Total Capital (to risk-weighted assets) | 10.50% | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Tier I Capital (to risk-weighted assets) | 8.50% | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Tier I Capital (to average assets) | 4.00% | ||
Minimum To Be Well Capitalized Under Prompt Corrective Ratio, Common Equity Tier 1 (to risk-weighted assets) | 7.00% | ||
Fully Phased-In | |||
Minimum Capital Requirement, Total Capital (to risk-weighted assets) | $ 28,627 | ||
Minimum Capital Requirement, Tier I Capital (to risk-weighted assets) | 23,168 | ||
Minimum Capital Requirement, Tier I Capital (to average assets) | 16,264 | ||
Minimum Capital Requirement, Common Equity Tier 1 (to risk-weighted assets) | $ 19,079 | ||
Minimum Capital Requirement Ratio, Total Capital (to risk-weighted assets) | 10.50% | 10.50% | 10.50% |
Minimum Capital Requirement Ratio, Tier I Capital (to risk-weighted assets) | 8.50% | 8.50% | 8.50% |
Minimum Capital Requirement Ratio, Tier I Capital (to average assets) | 4.00% | 4.00% | |
Minimum Capital Requirement Ratio, Common Equity Tier 1 (to risk-weighted assets) | 7.00% | 7.00% | 7.00% |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Fair Value, by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | $ 43,504 | $ 44,785 |
U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 1,017 | 8,997 |
U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,660 | 2,740 |
Residential mortgage backed securities [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 3,174 | 3,188 |
Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 35,728 | 28,880 |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure | 43,846 | 45,182 |
Fair Value, Measurements, Recurring [Member] | U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 1,017 | 8,997 |
Fair Value, Measurements, Recurring [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,660 | 2,740 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations Issued by the FHLMC [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 925 | 980 |
Fair Value, Measurements, Recurring [Member] | Residential mortgage backed securities [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 3,174 | 3,188 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 35,728 | 28,880 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 43,504 | 44,785 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government-sponsored enterprises obligations [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 1,017 | 8,997 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government agency small business administration pools guaranteed by SBA [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 2,660 | 2,740 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations Issued by the FHLMC [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 925 | 980 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential mortgage backed securities [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 3,174 | 3,188 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | ||
Securities available-for-sale: | ||
Securities available-for-sale, at fair value | 35,728 | 28,880 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 342 | 397 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | 342 | 397 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | $ 342 | $ 397 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - Mortgage-backed securities [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Beginning Balance | [1] | $ 397 | $ 479 |
Included in Net Income | [1] | (55) | (35) |
Ending Balance | [1] | $ 342 | $ 444 |
[1] | Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Summary of Significant Unobservable Inputs used in Level 3 Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Mortgage-backed securities [Member] | |||||
Mortgage Servicing Rights | [1] | $ 342 | $ 397 | $ 444 | $ 479 |
Prepayment Rate [Member] | Mortgage-backed securities [Member] | |||||
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |||
Mortgage Servicing Rights | $ 342 | $ 397 | |||
Prepayment Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 9.05 | ||||
Prepayment Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 37.04 | ||||
Prepayment Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 17.75 | 13.08 | ||
Fair value valuation techniques | Prepayment Rate | ||||
Discount Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 9 | ||||
Discount Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 9 | ||||
Discount Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 9 | 9.50 | ||
Fair value valuation techniques | Discount Rate | ||||
Delinquency Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 2.44 | ||||
Delinquency Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 3.22 | ||||
Delinquency Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 2.52 | 2.48 | ||
Fair value valuation techniques | Delinquency Rate | ||||
Default Rate [Member] | Minimum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.10 | ||||
Default Rate [Member] | Maximum [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | 0.26 | ||||
Default Rate [Member] | Weighted Average [Member] | |||||
Mortgage Servicing Rights, Measuring Inputs | [2] | 0.12 | 0.09 | ||
Fair value valuation techniques | Default Rate | ||||
[1] | Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. | ||||
[2] | Unobservable inputs for mortgage servicing rights were weighted by loan amount. |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Valuation, Market Approach [Member] | Selling Costs Provision [Member] | ||
Financing Receivable Nonaccrual Fair Value Disclosure | $ 967 | $ 996 |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Summarizes Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Nonaccrual Fair Value Disclosure | $ 967 | $ 996 |
Significant Unobservable Inputs Level 3 | ||
Financing Receivable Nonaccrual Fair Value Disclosure | $ 967 | $ 996 |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Non-financial assets and liabilities measured at fair value on a recurring basis | $ 0 | |
Foreclosed assets | $ 0 | $ 0 |
Fair Values of Assets and Lia_9
Fair Values of Assets and Liabilities - Fair Value Measurements, Recurring and Nonrecurring (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Cash and due from banks | $ 4,375 | $ 4,009 |
Interest-bearing time deposits with other banks | 2,488 | 2,735 |
Federal Home Loan Bank stock | 3,044 | 2,971 |
Bank-owned life insurance | 4,272 | 4,267 |
Loans, net | 346,191 | 341,980 |
Accrued interest receivable | 1,239 | 1,235 |
Financial Liabilities: | ||
Deposits | 282,725 | 281,616 |
Advances from Federal Home Loan Bank | 66,992 | 66,219 |
Mortgagors’ tax escrow | 1,890 | 586 |
Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,375 | 4,009 |
Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 2,488 | 2,735 |
Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 3,044 | 2,971 |
Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,272 | 4,267 |
Loans, net [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 344,307 | 336,847 |
Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 1,239 | 1,235 |
Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 285,121 | 281,707 |
Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 67,599 | 66,060 |
Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 1,890 | 586 |
Fair Value, Inputs, Level 1 [Member] | Cash and due from banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,375 | 4,009 |
Fair Value, Inputs, Level 1 [Member] | Accrued interest receivable [member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 1,239 | 1,235 |
Fair Value, Inputs, Level 1 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 223,555 | 220,596 |
Fair Value, Inputs, Level 2 [Member] | Interest-bearing time deposits with other banks [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 2,488 | 2,735 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank stock [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 3,044 | 2,971 |
Fair Value, Inputs, Level 2 [Member] | Bank-owned life insurance [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | 4,272 | 4,267 |
Fair Value, Inputs, Level 2 [Member] | Deposits [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 61,566 | 61,111 |
Fair Value, Inputs, Level 2 [Member] | Federal Home Loan Bank Borrowings [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 67,599 | 66,060 |
Fair Value, Inputs, Level 2 [Member] | Mortgagors' tax escrow [Member] | ||
Financial Liabilities: | ||
Financial Liabilities Fair Value Disclosure | 1,890 | 586 |
Fair Value, Inputs, Level 3 [Member] | Loans, net [Member] | ||
Assets, Fair Value Disclosure | ||
Assets, Fair Value Disclosure | $ 344,307 | $ 336,847 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | May 12, 2020USD ($)Loan | Apr. 13, 2020USD ($)Derivative | Apr. 30, 2021USD ($) | Apr. 16, 2020 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | ||||||
Borrowing advances from FHLB | $ 66,992 | $ 66,219 | ||||
Scenario Forecast [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Borrowing advances from FHLB | $ 5,000 | |||||
Federal Home Loan Bank Advances [Member] | Scenario Forecast [Member] | ||||||
Subsequent Event [Line Items] | ||||||
FHLB outstanding date | Apr. 13, 2026 | |||||
Description of interest rate | The renewal date will be on the 13th day of every January, April, July and October, and the interest rate on these quarterly advances is also expected to move closely with changes in the 3-month LIBOR. | |||||
Convert floating interest payments to fixed rate start | Jul. 13, 2021 | |||||
Convert floating interest payments to fixed rate end | Apr. 13, 2026 | |||||
Federal Home Loan Bank Advances [Member] | 5-Year Interest Rate Swap [Member] | Scenario Forecast [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notional amount | $ 5,000 | |||||
Fixed interest rate | 0.74% | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of derivative hedging instruments executed | Derivative | 2 | |||||
Borrowing advances from FHLB | $ 5,000 | |||||
London inter bank offered rate term | 3 months | |||||
Temporary payment relief provided for number of loans | Loan | 118 | |||||
Aggregate outstanding principal balance provided for temporary payment relief | $ 45,400 | |||||
Subsequent Event [Member] | Commercial Loans [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Temporary payment relief provided for number of loans | Loan | 50 | |||||
Aggregate outstanding principal balance provided for temporary payment relief | $ 32,000 | |||||
Subsequent Event [Member] | Residential Loans [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Temporary payment relief provided for number of loans | Loan | 68 | |||||
Aggregate outstanding principal balance provided for temporary payment relief | $ 13,300 | |||||
Subsequent Event [Member] | PPP Loans [Member] | ||||||
Subsequent Event [Line Items] | ||||||
CARES Act number of guaranteed loans | Loan | 249 | |||||
CARES Act aggregate guaranteed outstanding loans | $ 31,800 | |||||
Subsequent Event [Member] | PPPLF [Member] | ||||||
Subsequent Event [Line Items] | ||||||
CARES Act loan interest rate | 35.00% | |||||
CARES Act loan advances | $ 25,700 | |||||
CARES Act collateralized loans | Loan | 156 | |||||
Subsequent Event [Member] | Federal Home Loan Bank Advances One [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Convert floating interest payments to fixed rate start | Jul. 13, 2020 | |||||
Convert floating interest payments to fixed rate end | Apr. 13, 2025 | |||||
Subsequent Event [Member] | Federal Home Loan Bank Advances One [Member] | 5-Year Interest Rate Swap [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notional amount | $ 5,000 | |||||
Fixed interest rate | 0.68% | |||||
Subsequent Event [Member] | Federal Home Loan Bank Advances [Member] | ||||||
Subsequent Event [Line Items] | ||||||
FHLB outstanding date | Apr. 13, 2025 | |||||
Description of interest rate | The renewal date will be on the 13th day of every January, April, July and October and the interest rate on these quarterly advances is expected to move closely with changes in the 3-month London Inter-bank Offered Rate (“LIBOR”) (a benchmark interest rate). |